The Role of VegaX Holdings in the Konstellation Network Ecosystem

The material included herein has been prepared by VegaX Holdings (“VegaX” or the “Company”) and is general background information about VegaX’s current and projected activities as of the date of this presentation. This information is given in summary form and does not purport to be complete. Information in this presentation, including forecast information, should not be considered as advice or a recommendation to investors or potential investors in relation to holding. Before acting on any information, you should consider the appropriateness of the information having regard to these matters, any relevant offer document and in particular, you should seek independent advice. No information provided herein shall be considered a solicitation or offering for any product or service to any US person or persons in any jurisdiction where such solicitation or offer would be unlawful.

VegaX was born from the Konstellation Venture Studio, which aims to be the world’s first comprehensive cryptocurrency platform to provide enhanced data feeds and digital asset management products. The cryptocurrency market is naturally volatile, primarily due to its short history compared to other financial markets. However, as the industry continues to mature, the need for robust data feeds and associated products and strategies will only continue to grow. VegaX will be run in partnership with one of the largest accelerators in the world which will allow us to tap a global network of partners and experts that will help VegaX continue to move forward.

At Konstellation, our topmost concern is creating long-term value for the DARC token. Many other projects and protocols have focused exclusively upon an external community or solely focused on the development of technology.

We believe that blockchain ecosystem development is best suited for a hybrid of these models. This is one of the main reasons that we launched the Konstellation Venture Studio, which will allow us to incubate and launch the best ideas by leveraging our human and capital resources in creating an even deeper and more robust ecosystem for DARC.

Interaction with and fee payment for VegaX indexes and products will be seamlessly integrated with DARC providing an additional core use case for DARC. As we have outlined in our forthcoming whitepaper, our token economy will be built on a triumvirate of overarching use cases. Users will be able to “Stake to Bond — Stake to Earn — Stake to Access” — all of which will serve to safeguard the value of DARC. In the case of VegaX, users must stake their DARC in order to access premium versions of VegaX products. In the future, we will also introduce digital assets that are native to Konstellation Network and users will be able to stake their DARC to earn reductions on fees and other enhancements to their returns.

One of the first strategies from VegaX is the Enhanced Bitcoin Exposure (“EBE”) Strategy.

This strategy is intended to provide Bitcoin holders with current income and moderate downside protection by selling options on the core BTC holdings.

Usually within the traditional markets and more mature industries pricing in the market is priced relatively accurately. However, within the digital asset industry, current market conditions allow for large premiums to be taken advantage of to generate income. There is no token provided (although we may create a tokenized structure in the near future) and all of the BTC will be held in custody solutions maximized for security to protect the holdings of all participants. Participants will be able to redeem their bitcoin at any time subject to the holding requirements of the strategy. Below you’ll find the steps to sign up to participate in this strategy:

Figure 1. Signing up to participate in the EBE strategy.

To further demonstrate the potential benefits for BTC holders in the EBE strategy, below are three hypothetical scenarios:

Table 1. EBE Cases 1–3.

This is not available to any US-persons or any persons that reside in jurisdictions where this such an offer, program or solicitation would be unlawful prior to registration or qualification under the relevant rules or regulations of any such state or jurisdiction.

We recently published a summary of what to look forward to in Q1 and Q2, please visit it here.

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DARC is the fuel that drives the Konstellation Network, the infrastructure for the interoperable DeFi capital markets.